Balfour Beatty — full event log

Power Transmission and Distribution business achieved PAS 2080:2023 verification in January 2025. Standard now being embedded into UK-wide Business Management System.

sustainability_report p.5

In March 2025, the Board announced the appointment of Philip Hoare as Group Chief Executive Officer, position to be taken up September 2025. Leo Quinn will step down after 10+ years.

sustainability_report p.4

After surpassing the £3 billion social value target in 2024 ahead of schedule, Balfour Beatty set a new target to create £6 billion of social value in the UK by 2030 (measured against a 2025 baseline). New target also includes 60,000 hours of engagement with education by 2030.

sustainability_report p.3

Around 70% of UK Scope 1 emissions come from fuel purchased for plant, fleet and generators. Three-pronged approach: efficiency, electrification, alternative fuels. Implementing fuel hierarchy (zero carbon → low → medium → high), reducing idling, telematics, deploying EcoSense cabins (up to 30% less emissions), EcoNet energy management on sites with 4+ cabins, Power Profiler tool.

sustainability_report p.5

Targets to eliminate non-hazardous excavation waste to landfill in the UK by 2030; zero avoidable waste in the UK by 2040 and US by 2050. The Group has implemented the Construction Leadership Council's zero avoidable waste routemap, deploys Bridging the Gap action plans across Business Units, and developed innovations such as the Geopak reusable packaging system with Whitecroft Lighting (preventing up to 2 tonnes of packaging waste on Dunfermline Learning Campus project).

sustainability_report p.58

SBTi-validated target to reduce Scope 3 purchased goods and services emissions by 25% by 2030 vs 2020 baseline. The Group's Responsible Sourcing team has worked with Materials Engineering to develop carbon and steel decarbonisation roadmaps to 2030. Internal Concrete Knowledge course launched with training on low-carbon concrete. 187 supply chain modern slavery audits completed in 2024.

sustainability_report p.61

In June 2024 Balfour Beatty launched its evolved Building New Futures sustainability strategy. The Group's near and long-term science-based targets were validated by the SBTi: 42% reduction in Scope 1 and 2 emissions by 2030 (vs 2020 baseline), net zero Scope 1 and 2 by 2045, net zero Scope 1, 2 and 3 by 2050, and 25% reduction in Scope 3 purchased goods and services by 2030.

sustainability_report p.50

Following process to stress test targets with SBTi, the Group revised its net zero target for Scope 1 and 2 emissions to 2045, and Scope 3 to 2050, both originally set for 2040.

sustainability_report p.12

Brought forward the UK based target to create £3 billion of social value by 2025 (previously 2030). Target was achieved in 2024 (£3.46bn since 2021).

sustainability_report p.12

In 2024 committed to the UK Business & Biodiversity Forum's Nature Positive Pledge. Goal to globally halt and reverse nature loss by 2030 (vs 2020 baseline) and recovered by 2050. UK targets to be set in 2025.

sustainability_report p.56

In December 2024, Balfour Beatty achieved ISO 45003 accreditation, the first global standard for managing psychological health and safety at work.

sustainability_report p.45

Over the year 187 supply chain modern slavery audits were completed. Since starting the audits in 2023, audited 308 supply chain partners. 100% of pre-qualified Constructionline supply chain partners had a modern slavery statement or equivalent in place.

sustainability_report p.62

Balfour Beatty uses renewable energy tariffs backed by the Renewable Energy Guarantees of Origin (REGO) scheme to address Scope 2 emissions and is reviewing opportunities for Power Purchase Agreements that would directly connect operations to renewable energy sources. Renewables also feature in its fuel hierarchy at the top tier: 'Zero carbon — electricity or green hydrogen created from renewable sources'.

sustainability_report p.6

The Group holds market-leading capabilities in UK power transmission and distribution, with the order book in this area more than doubling in 2024. Wins include first phase of £690m Skye 132kV reinforcement project for SSEN Transmission, £192m Argyll Substations, £363m Bramford to Twinstead Reinforcement, and selection as preferred partner for SP Energy Networks' Strategic Agreement for Transmission Overhead Line Works (up to £3bn tendering). Over 500 new starters in the UK Power Transmission and Distribution business in 2024.

sustainability_report p.35

In April 2024 the Group transitioned its UK utility procurement contract to Drax for zero-carbon electricity. In 2024 it procured c.34,474 MWh of REGO-certified grid electricity (up 23% from 2023) and generated 369 MWh of renewable energy on-site, including hydrogen generators paired with cabin-mounted solar panels and 138 MWh of green hydrogen-generated energy. Renewable energy supports the Group's SBTi-validated 42% Scope 1 and 2 reduction target by 2030. The Group continues to deploy battery hybrid generator setups (69 in 2024) and 65% of cabin and welfare units are now energy efficient EcoSense models.

sustainability_report p.55

Used EcoSheetPiles on the Nuneham viaduct restoration scheme: Electric Arc Furnace technology, 370kg CO2e per tonne (84% reduction vs traditional), 100% recycled content, manufactured with 100% renewable electricity, delivering 30% project emissions saving. Developing software using invoice data to provide embodied carbon benchmarks across products and services.

sustainability_report p.7

Plant, fleet and generators account for 92% of Scope 1 and 2 emissions. The Group is taking a three-pronged approach: efficiency, electrification and alternative fuels. Trials of Syntech biofuel (100% UK waste cooking oil HVO alternative) achieve 80-90% reduction vs diesel. Asset & Technology Solutions team is developing battery storage solutions and a Site Energy Efficiency Dashboard (SEED) to optimise energy use.

sustainability_report p.50

Balfour Beatty does not, at present, offset any GHG emissions arising from operations, on the basis that there are significant opportunities to abate emissions across Scopes 1, 2 and 3 through implementing efficiencies, modern methods of construction and the adoption of low-carbon technologies and materials. If offsetting is undertaken in future it would abide by the Oxford Principles. The Group recognises the role of 'insetting' GHG emissions by implementing reduced or low-carbon solutions within its value chain and supporting the decarbonisation of the construction sector.

sustainability_report p.53

Through a joint operation with Fluor Enterprises Inc., damages awarded against the joint operation in favour of NTTA amounting to $112m (Group's share) in November 2024. Group recognised £52m non-underlying charge net of £40m insurance recoveries.

sustainability_report p.87

In 2024, following developments in the legal landscape of the BSA and progression of the Group's investigations, the Group reassessed its provision for BSA claims resulting in an increase in the provision of £83m, recognised in non-underlying.

sustainability_report p.87

50% increase in number of female colleagues in UK by 2030 (vs 2021 baseline); 60% increase in minority ethnic and black representation in UK by 2030.

sustainability_report p.49

Near-term SBTi-validated target: 42% reduction in Scope 1 and 2 carbon emissions by 2030 measured against a 2020 baseline. Long-term target: net zero Scope 1, 2 and 3 by 2050. Aligned with limiting warming to 1.5°C.

sustainability_report p.5

SBTi-validated target to reduce Scope 3 carbon emissions from purchased goods and services by 25% by 2030, measured against a 2020 baseline.

sustainability_report p.12

Balfour Beatty is a signatory to the Nature Positive Business Pledge (created by ISEP, UK Business and Biodiversity Forum, RSPB, Aldersgate Group and ICC UK). Set new commitment: deliver measurable targets to halt nature loss by 2030 and embed nature positive principles across UK operations to support nature recovery by 2050. Each UK business unit setting annually evolving nature targets.

sustainability_report p.8

In 2024 the Highways business achieved PAS 2080:2023 verification — the gold standard for buildings and infrastructure carbon management. Power Transmission and Distribution business followed in January 2025.

sustainability_report p.5

Targets to increase the number of female colleagues by 50% in the UK by 2030 and increase minority ethnic and black representation by 60% in the UK by 2030, measured against a 2021 baseline.

sustainability_report p.18

PwC LLP engaged to provide independent limited assurance over reporting of social value and Group Scope 1 and 2 GHG emissions.

sustainability_report p.20

Following 2024 strategy evolution, Balfour Beatty undertook a double materiality assessment aligned to EFRAG guidance via stakeholder interviews and desktop research. Confirmed six focus areas and identified emerging risks/opportunities such as water management.

sustainability_report p.21

UK Carbon Reduction Plan outlines a pathway to reduce Scope 1, 2 and 3 carbon emissions by 90% by 2050 and use permanent carbon removal and storage to counterbalance the final residual 10% of emissions. Approach aligned with the Oxford Principles for Net Zero Aligned Carbon Offsetting as required by the SBTi.

sustainability_report p.5

Around 70% of UK Scope 1 emissions come from fuel directly purchased for plant, fleet and generators. Three-pronged approach: efficiency, electrification and alternative fuels. Minimum standards include EcoSense cabins (up to 30% less carbon), EcoNet energy management on sites with 4+ cabins, Power Profiler tool for site compounds, fuel hierarchy implementation and telematics-based idling reduction.

sustainability_report p.5

Trialled Syntech biofuel — produced in the UK from 100% UK-sourced waste cooking oil — as a drop-in diesel replacement achieving 80–90% reduction in carbon emissions. Agreements in place with multiple OEMs and suppliers. In June 2024, after co-funding a deep dive into HVO, reaffirmed position not to promote HVO and focus on Syntech biofuel instead.

sustainability_report p.7

For the Infrastructure Investments business, working closely with customers to integrate low-carbon requirements at design stage and retrofit existing assets with low-carbon solutions. For joint ventures and operations without direct operational control, sharing best practice with partners to drive adoption of low-carbon innovations.

sustainability_report p.6

Purchased goods and services represented 83% of Scope 3 in 2024, with 81% coming from ~10% of suppliers; 50 of these top suppliers have already set SBTs to reduce emissions 30% by 2030. Focus areas: training procurement teams on carbon, sustainability heatmap tool covering 13 risk/opportunity areas, Cement 2 Zero trial (world's first zero-emissions cement at industrial scale), Concrete Knowledge course and a 50-steel-supplier decarbonisation survey.

sustainability_report p.13

25% reduction in Scope 3 carbon emissions from purchased goods and services by 2030, measured against 2020 baseline and SBTi-verified.

sustainability_report p.12

In 2024, Balfour Beatty's Highways business in the UK achieved PAS2080:2023 certification, the gold standard for buildings and infrastructure carbon management. Elements being embedded into UK-wide Business Management System (already ISO 14001:2015 certified).

sustainability_report p.5

Signatory to the Nature Positive Business Pledge (created by IEMA, UK Business and Biodiversity Forum, RSPB, Aldersgate Group, ICC UK), committed to halting and reversing impact on nature. Clear measurable UK targets to be set in 2025; halt nature loss by 2030; nature positive principles embedded by 2050.

sustainability_report p.8

Original target set in 2020 to create £3 billion of UK social value by 2030; on course to achieve five years ahead of schedule, target accordingly brought forward to 2025 (measured against 2021 baseline).

sustainability_report p.15

Increase female colleagues by 50% and minority ethnic and black representation by 60% in the UK by 2030, against 2021 baseline.

sustainability_report p.17

2024 evolution of Building New Futures strategy (originally launched 2020) incorporates expanded focus areas including nature positive, resource efficiency, supply chain integrity, community engagement and DEI alongside climate change.

sustainability_report p.3

Eliminate non-hazardous excavation waste to landfill in the UK by 2030; zero avoidable waste in the UK by 2040 and US by 2050. Implementing Construction Leadership Council's zero avoidable waste routemap.

sustainability_report p.10

Two materials with the highest carbon intensities — concrete and steel — represent a key focus for the 25% Scope 3 purchased goods reduction target by 2030. The Group signed an agreement with Versarien to develop low-carbon, graphene-infused 3D-printable mortars using Cementene admixture. In 2024 it surveyed 50+ steel suppliers; a significant portion are adopting Electric Arc Furnace (EAF) technology which reduces carbon intensity by 80% vs blast furnace. EcoSheetPiles deployed on the Nuneham embankment project produced 370kg CO2e/tonne vs typical 2.3 tCO2e for traditional steel.

sustainability_report p.61

The Company believes this strategy demonstrates alignment with the Sustainable Development Goals set by the United Nations.

sustainability_report p.145

Balfour Beatty does not pursue corporate-wide 100% renewable electricity via PPAs. Instead it procures Renewable Electricity Guarantees of Origin (REGO) certificates - 26,627 MWh in 2023 (up 40% from 2022) - to back UK grid electricity. On-site generation is small-scale: a 320-panel solar PV array at Derby Raynesway depot (102 MWh/yr), thin-film solar at Bottesford depot (10 MWh/yr), and roof-mounted solar at Canvey Island. Gammon (HK JV) operates 480 PV panels at Tseung Kwan O generating ~555 MWh/yr. The Group also operates two green hydrogen fuel cells generating 109 MWh in 2023. Total renewable energy generated is only 173 MWh - the strategy is materially reliant on REGO certificates rather than additional new renewable capacity.

sustainability_report p.62

Working with Strategic Design Partners (Jacobs, AtkinsRéalis, Mott MacDonald) and customers from outset to embed low-carbon solutions at design stage. Lesson from Royal Botanic Garden Edinburgh 'Towards a Zero Carbon Construction Site' initiative: early decision-making is vital to reducing emissions across design, construction, operation and decommissioning.

sustainability_report p.13

For Infrastructure Investments business assets, collaborating with customers to incorporate low-carbon requirements at design stage and retrofit low-carbon solutions to existing assets. For joint ventures and operations without direct operational control, sharing best practice with partners to drive low-carbon innovation adoption.

sustainability_report p.6

Purchased goods and services represent 86% of the Group's Scope 3 emissions and are the largest single decarb lever. Strategy is to engage with key product categories (steel, concrete, cement, aggregates) to obtain primary embodied-carbon data, encourage supplier target setting, collaborate on innovation and source from low-carbon suppliers. The Group co-funded research with the Supply Chain Sustainability School to address data maturity gaps and undertook tender exercises with 40% sustainability weighting for waste contracts. Customer/client engagement on low-carbon project design is also identified as a near-term lever.

sustainability_report p.58

Balfour Beatty's 2040 ambition is to go 'Beyond Net Zero Carbon' on an absolute reduction basis, with a science-based carbon reduction target by 2030. The strategy emphasises absolute reductions rather than offsetting; the document does not describe a removals portfolio (DAC, BECCS, biochar) or offset retirement programme.

sustainability_report p.18

Balfour Beatty mandates EcoSense site cabins (65% of UK cabins; ~30% less energy than traditional cabins) and the EcoNet energy management system which automatically powers down cabin equipment when not in use. 66 active EcoNet stations were deployed across UK sites at November 2023, saving 1,290 MWh. The mandate is overseen by the in-house Energy Management Unit (EMU).

sustainability_report p.57

Plant and equipment fuel (predominantly diesel) is the largest source of Group Scope 1 emissions. The Energy Management Unit (EMU) mandates low-energy assets via the Power Profiler tool, has deployed 60+ battery storage units to off-grid sites in 2023, and is trialling hydrogen fuel cell and hydrogen ICE generators, solar/hydrogen mobile welfare units, electric excavators, and hydrogen-hybrid highways maintenance vehicles. A dual-fuel hydrogen retrofit on the M77 project is expected to displace up to 30% of diesel usage. Idling reduction via telematics on the A63 project cut plant idling 36%→17%.

sustainability_report p.56

Cat 15 Investments emissions (342,628 tCO2e in 2023) are dominated by Gammon (Hong Kong JV) and US military housing assets. Strategy is to engage closely with Jardine Matheson (Gammon JV partner - which itself has a SBTi-validated 1.5°C near-term target as the first Greater China construction company) and other JV partners to track progress and collaborate on decarbonisation measures. Investment activities target opportunities aligned with the energy transition, including the new Urban Fox EV charging JV (formed March 2023), nascent UK energy transition assets, and OFTO concessions.

sustainability_report p.58

2030 target of 40% reduction in waste tonnes per £m revenue (achieved for UK in 2023 vs restated 2021 baseline). Bridging the Gap plans embed mandatory waste reduction actions at BU level. ProjectSurplus marketplace launched October 2023 to facilitate transfer of surplus materials between sites. Pallet Loop trialled for pallet timber reuse on Canvey Island and being rolled out. 99% of UK construction waste diverted from landfill in 2023.

sustainability_report p.66

Scope 2 reductions pursued via renewable energy tariffs backed by the Renewable Energy Guarantees of Origin (REGO) scheme, with PPA opportunities under review for direct connection to renewable sources. Energy efficiency layered in via EcoNet, EcoSense cabins, and Power Profiler. In 2023, generated 109 MWh of energy from green hydrogen (e.g. A63 Castle Street hydrogen power generators, M77 retrofitted hydrogen-diesel vehicles expected to deliver 40% carbon reduction).

sustainability_report p.6

Scope 2 strategy: analyse electricity consumption of projects, offices and depots, retrofit low-energy products and adapt working practices to avoid unnecessary consumption. US Navy Southeast portfolio energy efficiency project delivered 9,941,959 kWh of energy savings (HVAC, weatherproofing, LED lighting via ENGIE Services US partnership).

sustainability_report p.6

Purchased goods and services represent 86% of Scope 3 emissions. Hard-to-decarbonise products like concrete, steel and aggregates targeted via 25% reduction by 2030. Procurement teams trained on carbon, sustainability heatmap tool covering 13 risk areas guides supplier selection. Initiatives include Cement 2 Zero (trial of world's first zero emissions cement at industrial scale). In 2023, 34% of Scope 3 emissions came from suppliers with set or committed SBTs.

sustainability_report p.13

In 2023, Balfour Beatty reassessed application of the operational control consolidation approach. Certain UK/US joint ventures and joint operations where the Group lacks full authority were excluded from Scope 1 & 2 (now in Scope 3 Cat 15: Investments on a proportional basis), while other JVs where the Group has 'considerable influence' are included under new 'enhanced reporting criteria' at 100% (not proportional). Led to restatement of the Group's Scope 1 & 2 emissions.

sustainability_report p.8

PwC LLP engaged in 2023 to undertake independent limited assurance of the Group's Total Scope 1 & 2 emissions and emissions intensity (tCO2e/£m revenue) using ISAE 3000 (Revised) and ISAE 3410 for year ended 31 December 2023.

sustainability_report p.9

Balfour Beatty aligns Building New Futures strategy to UN SDGs: SDG 13 (Climate Action) for Beyond Net Zero Carbon; SDG 12 (Responsible Consumption and Production) for waste; SDG 8 (Decent Work and Economic Growth) and SDG 11 (Sustainable Cities and Communities) for Communities/Social Value.

sustainability_report p.13

Preparation of a full GHG inventory including Scopes 1, 2 and 3 plus Outside of Scopes and FLAG emissions. Reporting now defined across Categories 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13 and 15 (Category 10 and 14 not applicable).

sustainability_report p.26

The UK business achieved its 2030 target of reducing tonnes of waste generated per £m revenue by 40% in 2023 (vs 2021 baseline).

sustainability_report p.13

Balfour Beatty's GHG emissions are predominantly from the use of diesel in vehicles and plant & equipment, with 91% of Scope 1 & 2 being Scope 1. Reporting covers gas oil (red diesel) for mobile plant (forklifts, excavators, cranes, generators), 100% mineral diesel, biodiesel blends (5%+), Shell GTL diesel and hydrogen (blue, grey, green) as transition fuels.

sustainability_report p.7

Scope 1 stationary combustion is tracked separately for own estate, project & temporary sites, and landlord-purchased gas. Refrigerant losses (HFCs, SF6, PFCs) from installation/maintenance/dismantling of switchgear, AC and refrigeration systems are reported as direct emissions.

sustainability_report p.20

Direct emissions from equity investments, incorporated JVs and joint operations where the Group lacks considerable influence are accounted for as proportional emissions in Scope 3 Category 15 (Investments) in line with ownership interests. Reassessment in 2023 moved certain UK/US JVs from operational control to Cat 15.

sustainability_report p.10

Construction, demolition and excavation waste managed by both directly employed and subcontractor supply chains. Subcontractor fuel use (butane, propane) is reported under Scope 3, not Scope 1. Purchased Goods & Services (Cat 1) and Upstream Transportation (Cat 4) capture cradle-to-gate emissions from tier 1 suppliers.

sustainability_report p.26

Renewable electricity is sourced through 100% renewable electricity tariffs (separately tracked for own estate vs project/temporary sites under LEA 2.4.05/06). To qualify, supplier must evidence additionality, retire associated levy exemption certificates, and issue a Guarantee of Origin or similar (e.g. REGO). On-site renewable generation captured under LEA 2.4.07 from solar PV arrays and solar tower lights. Blue, grey and green hydrogen are tracked separately.

sustainability_report p.24

In late 2023, Balfour Beatty formally submitted Science Based Targets and a related carbon abatement plan, aligned with the 1.5°C global warming limit, to the Science Based Targets initiative for validation in 2024. Targets cover near-term and long-term (net zero) horizons.

sustainability_report p.13

During 2023 the Group reassessed its operational control boundary and concluded that its 50% share of Gammon's Scope 1 and 2 emissions should be reported within Scope 3 Category 15: Investments rather than within the Group's own Scope 1 and 2. Prior-year comparatives have been restated. This significantly reduced reported Scope 1+2 (e.g. 2022 reported as 253,695 tCO2e under old methodology vs 146,609 tCO2e restated).

sustainability_report p.58

Balfour Beatty enhanced its Scope 3 carbon emission data set, compiling a full GHG inventory from 2020 baseline for SBTi submission. 13 of 15 Scope 3 categories now assessed (Cat 10 and Cat 14 not relevant).

sustainability_report p.62

In 2023, the UK Diversity & Inclusion strategy 'Value Everyone' was refreshed, setting 2030 targets: 50% increase in female representation, 60% increase in minority ethnic representation, and 60% increase in black representation versus 2021 baseline.

sustainability_report p.75

In the UK, Balfour Beatty was awarded the Clear Assured Bronze Standard, a globally recognised inclusion standard for commitment to diversity and inclusion in 2023.

sustainability_report p.75

Company believes Building New Futures strategy demonstrates alignment with the Sustainable Development Goals set by the United Nations. Specific SDG numbers are not enumerated in this report.

sustainability_report p.144

Group developed a new modern slavery audit approach for UK supply chain. 121 audits undertaken in 2023. All suppliers required to produce a modern slavery statement by end of 2024 regardless of turnover.

sustainability_report p.67

Balfour Beatty Communities is in the second year of an independent compliance monitorship entered into with the US Department of Justice on 6 September 2022. The monitor issued her first report in 2023.

sustainability_report p.52

Balfour Beatty does not, at present, offset any GHG emissions arising from its operations. The Group's stated rationale is that significant opportunities exist to abate emissions across Scopes 1-3 through efficiencies, Modern Methods of Construction and low-carbon materials. The Group also distinguishes 'insetting' (in-supply-chain reductions) from offsetting. Should the Group decide to offset in future to support its SBTi-aligned 1.5°C net zero target, it commits to abide by the Oxford Principles for Net Zero Aligned Offsetting.

sustainability_report p.60

The Group has explicitly chosen NOT to pursue hydrotreated vegetable oil (HVO) or other transitional fuels as carbon mitigation, on grounds these create worse environmental issues (notably biodiversity impacts in South East Asia) than they solve. The Group is committed to phasing out diesel and fossil fuels via renewable/low-carbon alternatives rather than offsets or biofuels. No durable removals programme (DAC/BECCS/biochar) disclosed. Targets being submitted to SBTi for 1.5°C validation in 2023.

sustainability_report p.6

Group rolling out UK-wide Carbon Conscious Education programme. Executive Committee received Carbon Literacy training in 2022. Each SBU produced carbon action plan in 2022. Gammon launched Carbon Essential and Science-based Target course for project managers, with 250+ attending. Working with partners to ensure training qualifications reflect carbon-related knowledge.

sustainability_report p.45

At the Royal Botanic Garden Edinburgh Biomes project, the Group is trialling geopolymer concrete (a low-carbon concrete substitute made from up to 96% waste materials) and exploring glass recycling from the Victorian Palm house. Surplus topsoil reused locally rather than disposed. Aim is to identify scalable low-carbon alternatives for wider rollout.

sustainability_report p.45

In December 2022, Balfour Beatty achieved a CDP rating of B which demonstrates that it is taking coordinated action on climate issues.

sustainability_report p.60

Group acknowledged that 2022 carbon emissions increased in part due to a higher mix of tunnelling and earthworks (most carbon-intensive construction activities). Notes more progress required to embed sustainability into everyday operations as customers seek cost efficiencies. No specific lever target disclosed.

sustainability_report p.11

Group partnered with Supply Chain Sustainability School for second year on supply chain decarbonisation survey ('Greening the Supply Chain'). Survey found 68% of respondents said sector not well enough prepared for net zero, 53% said low-carbon materials pipeline insufficient, 81% said construction practices changing too slowly. 96% report shortfall in skilled people for carbon/sustainability roles. Group provides supply chain training (5,302 hours, 14,000+ e-learning modules in 2022).

sustainability_report p.63

Electricity purchased via the UK-wide supply contract is backed by Renewable Energy Guarantee of Origin (REGO) certifications from solar and wind technologies. In 2022 circa 16,000 MWh of REGOs were procured. The Group also deployed >600 EcoSense cabins and Enertainer lithium-ion battery storage systems (Gammon partnership with AMPD Energy) as primary on-site power instead of diesel generators. In 2022 the Group generated 173 MWh of renewable electricity from solar cabins, solar tower lights, mobile signage and hybrid generation, plus 413 MWh from green hydrogen.

sustainability_report p.58

The UK business has published a Carbon Reduction Plan and committed to a 1.5 degree decarbonisation pathway and will be submitting its reporting methodology to the SBTi for validation in 2023. Gammon (HK JV) became first construction/engineering company in Hong Kong to commit to SBTi in October 2022.

sustainability_report p.57

Launched in 2022: 50% increase in female colleagues, 60% increase in minority ethnic colleagues, and 60% increase in Black employees by 31 December 2030 (using 31 December 2021 UK headcount as baseline).

sustainability_report p.69

Half-yearly review of methodology resulted in reduction of discount rates for UK portfolio and US military housing, with changes to forecast growth rate, overhead and tax methodology for US military housing. Net £28m increase in portfolio value. Independently reviewed by third-party valuation expert.

sustainability_report p.9

In June 2022 the Group raised US$158m of debt in the form of new US private placement notes maturing in tranches in 2027, 2029 and 2032 with average coupon 6.4%. Used to refinance US$209m USPP notes maturing March 2023.

sustainability_report p.82

Sustainability strategy aligned to UN Sustainable Development Goals; Building New Futures strategy reports against SDGs without specifying numbers in this report.

sustainability_report p.55

PwC LLP engaged to undertake independent limited assurance engagement of Group's Scope 1 and 2 emissions and resulting emissions intensity, and over social value generated in the UK, using assurance standards ISAE 3000 (Revised) and ISAE 3410.

sustainability_report p.58

Group identified over 130 ways to reduce site energy consumption. Pilot of hydrogen fuel cell generator at A63 road scheme replaced 100kVA diesel generator, saving 59,000 litres of diesel and 164 tCO2e annually. EcoNet tool and 600+ EcoSense cabins reduce site emissions by up to 30%; combined EcoNet+EcoSense expected to deliver additional 4,000-5,000 tonnes of CO2 savings annually across UK projects.

sustainability_report p.10

Group rebaselined its emissions reduction commitment against 2020 emissions (Scope 1+2 of 205,517 tCO2e) rather than older 2010 figure (357,983 tCO2e). Note 2020 baseline is significantly lower than 2010.

sustainability_report p.57

In December 2021, Balfour Beatty Communities reached a resolution with the US Department of Justice following completion of its investigation into specific performance incentive fees improperly claimed by BBC between 2013 and 2019 related to maintenance work at certain US military housing installations. Settlement totaling US$65.4m. Independent compliance monitor appointed in 2022.

sustainability_report p.41

In December 2020 the Group published 'Building New Futures' sustainability strategy with 2040 ambitions to go Beyond Net Zero Carbon, Generate Zero Waste, and Positively Impact >1 million people. 2030 targets: achieve science-based carbon reduction target; 40% reduction in waste generated per £m revenue; £3bn social value generated. Baseline year 2020 (waste baseline 2021).

sustainability_report p.3

From 2020 Balfour Beatty discloses Scope 2 using both location-based and market-based methodologies in line with GHG Protocol. Up to 2020 only location-based was reported. The change reflects greater transparency from supply chain partners and visibility of contractual instrument data (RECs, REGOs, PPAs).

sustainability_report p.11

Baseline year for sustainability performance reporting is set at 2010. Acquisitions and divestments trigger restatement of historic data including the baseline to preserve intensity ratios.

sustainability_report p.13

Baseline year emissions restated: Scope 1+2 (location) restated from 205,517 to 124,169 tCO2e for 2020. Restatement reflects removal of Gammon and recategorisation as Scope 3 Cat 15.

sustainability_report p.61

Strategy launched in 2020 with 2030 targets (science-based carbon reduction; 40% waste reduction; £3bn social value) and 2040 ambitions (Beyond Net Zero Carbon, Generate Zero Waste, Positively Impact More than 1 Million People).

sustainability_report p.13

Balfour Beatty captures Scope 1 emissions from natural gas in own estate and project sites, plus gas oil (red diesel) used for mobile plant such as excavators, cranes, generators and heating. Reporting separates stationary vs mobile combustion. Operational mobile plant fuel use is a primary Scope 1 source for the construction business.

sustainability_report p.22

Fleet petrol and diesel (including 5% biofuel blends, pure diesel, LPG, CNG) used in company-owned and leased vehicles are reported as Scope 1. Claimed mileage from company vehicles is captured; mileage in privately owned vehicles falls to Scope 3.

sustainability_report p.29

Scope 3 reporting focuses on the top five largest sources of embodied carbon in purchased materials such as sheet steel, cement, aggregate, asphalt and rebar. Responsible sourcing schemes (FSC/PEFC for timber, sector-specific schemes for other materials) underpin supply chain engagement.

sustainability_report p.39

Construction, excavation, demolition, office and manufacturing/depot waste are tracked by weight, split between landfill and waste avoided (reused, recycled or recovered). Aligned with the EU Waste Framework Directive and WRAP protocol.

sustainability_report p.40

Scope 3 business travel captures flights, train, ferry, coach journeys and claimed mileage in privately owned vehicles. Although not the largest Scope 3 source, data is captured because it is increasingly available and directly linked to operating costs.

sustainability_report p.38

Balfour Beatty reports renewable electricity purchased through 100% renewable tariffs for both own estate and temporary project sites, plus on-site renewable generation (e.g. solar). To qualify as green supply, contracts must demonstrate additionality, retire/redeem levy exemption certificates, and be backed by Guarantees of Origin (REGOs) or equivalent certificates. From 2020 these are reported under the market-based Scope 2 methodology per GHG Protocol Scope 2 Quality Criteria.

sustainability_report p.36

Scope 2 covers grid electricity for offices, depots, workshops and temporary project sites, including electricity provided free of charge by clients on construction sites. From 2020 both location-based (DEFRA/IEA factors) and market-based (contractual instruments) methodologies are reported.

sustainability_report p.34

Up to 2020 Balfour Beatty reported only using the location-based method. From 2020 both location-based and market-based methods have been disclosed annually due to greater transparency from supply chain partners on contractual instruments.

sustainability_report p.23

In 2020 Balfour Beatty launched its Building New Futures sustainability strategy, setting a firm 2030 target of halving 2020 carbon emissions (Scopes 1, 2 and 3) and a 2040 ambition of Going Beyond Net Zero Carbon. Also includes 40% waste reduction by 2030 and £3bn social value by 2030.

sustainability_report p.5

Strategic shift to lower-risk contracts: proportion of fixed-price work in UK Construction order book fell from 50% in 2018 to 18% in 2023, with target-cost rising to 65%.

sustainability_report p.9